What Exists When Budgeted Costs Exceed Actual Results

question 80

Multiple Choice

What exists when budgeted costs exceed actual results?

• A)a budgeting error
• B)a favourable difference
• C)an unfavourable difference
• D)an excess profit

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Definitions:

Accounts Receivable

Accounts receivable represents the money owed to a company by its customers for goods or services delivered but not yet paid for.

Accounts Receivable Turnover

A financial ratio indicating how quickly a company collects cash from credit sales, calculated over a given period.

Accounts Receivable

Accounts receivable represents the money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Sales

The cumulative amount of money made by a business from selling its goods or services.